Inventory management and possible ethical violations


Problem:

For retail organizations, merchandise inventory can be an asset or a liability. When it moves along at a healthy clip it is an asset, one that adds to the bottom line. If customers are slow to take to it or, worse, find it unattractive, the merchandise inventory becomes a liability, one that ties up cash and decreases in value over time.

Question:

Discuss on the issues (at least two) in inventory management and the possible ethical violations (at least two) commonly encountered.

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Accounting Basics: Inventory management and possible ethical violations
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